{"id":64001,"date":"2014-11-20T09:32:54","date_gmt":"2014-11-20T14:32:54","guid":{"rendered":"http:\/\/countingpips.com\/?p=64001"},"modified":"2014-11-20T11:54:58","modified_gmt":"2014-11-20T16:54:58","slug":"the-secret-advantage-goldsilver-owners-have-over-everyone","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/11\/the-secret-advantage-goldsilver-owners-have-over-everyone\/","title":{"rendered":"The Secret Advantage Gold\/Silver Owners Have Over Everyone"},"content":{"rendered":"
November 20, 2014<\/div>
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By Jerrell Jenkins, moneymetals.com<\/a><\/strong><\/p>\n

A lot of folks took advantage of recently falling gold and silver prices to beef up their precious metals holdings.<\/p>\n

Those adding to their portfolios understood the old adage of buying low and selling high.\u00a0 Unfortunately, others wait until dollar values of gold and silver have zoomed before deciding to convert their paper money.<\/p>\n

Still, most make buying decisions for their own good reasons.\u00a0 They either have the confidence of their convictions, or they have good questions still unanswered.<\/p>\n

One of the frequent questions we get at Money Metals Exchange is a good one \u2013 How would I go about \u201cspending\u201d my gold and silver in a barter-type economy?
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\nReaders and clients want to know if gold and silver would be accepted by a shop merchant<\/a> or by a tradesman offering his talents.\u00a0 They ask how a seller would \u201cmake change\u201d for gold and silver coins or bars.\u00a0 We feel those are perfectly valid questions.<\/p>\n

The answer highlights the simple advantage gold and silver would give you in every financial transaction.<\/p>

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Every deal requires a seller making an offer and a buyer accepting that offer.\u00a0\u00a0 Unless the buyer pays his money, there is no deal.\u00a0 The buyer always has the final option to seal the deal or walk away to find another seller who accepts metals.<\/p>\n

If the time ever comes in your life or the lives of your children that a catastrophic financial collapse destroys the U.S. dollar or hyperinflation sends dollar prices soaring, gold and silver will always hold value.\u00a0 Goods and services for barter would also have value, but there would be no meaningful, stable \u201cdollar price.\u201d<\/p>\n

Precious Metals Become the Coin of the Realm in a Breakdown\"The<\/strong><\/p>\n

Metals would be the primary form of currency most would need and gladly accept, followed by other forms of barter, including personal skills and talents.<\/p>\n

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In a financial collapse, the holder<\/em> of gold and silver would be in charge of his metals transactions, not the fellow trying to sell goods or services.\u00a0 You need the goods, but he needs a reliable currency.\u00a0 If he\u2019s competing with others selling the same thing, then you\u2019re in charge, not him.<\/p>\n

You\u2019ll recognize another way of saying it \u2013 He who has the gold makes the rules<\/strong>.<\/p>\n

The question then is not whether the merchant will gladly allow you to spend your gold or silver coins.\u00a0 The only question is whether he has enough<\/em> goods or services to get you to part with your monetary metals.<\/p>\n

For example, you would decide if your silver coin, readily recognized as wealth for thousands of years, is a fair trade for a bushel of apples that will rot in a couple of weeks and not be marketable at all, or a fair trade for an hour of a workman\u2019s time and talent, lost if no one else hires him.\u00a0\u00a0 You own the gold and silver.\u00a0 You decide its final value in the trade.\u00a0 You make the rules.\u00a0 You decide what \u201cchange\u201d is due you, not the other way around.\"Deal\"<\/p>\n

Barter, trading one valuable for another, was the earliest form of money.\u00a0 Cows, coconuts, bullets, and bourbon have been bartered at one time or another.\u00a0 In one survivor\u2019s account of the brutal Kosovo War of the 1990s, he wrote the most valuable barter item he had was a case of 1,000 butane lighters.<\/p>\n

One historic trade, admittedly shrouded in myth, was the 1626 purchase of the Island of Manhattan.\u00a0 Wealthy Dutch fur trader Peter Minuet thought he got a great deal for his 60 guilders in beads and blankets, later calculated at about $24.\u00a0 The tribal chief was just as happy.\u00a0 He purportedly later confessed his tribe didn\u2019t own Manhattan in the first place!<\/p>\n

Beads and butane lighters might not work so well today.\u00a0 The most important characteristic of circulating currency is widely accepted confidence as a store of wealth.\u00a0 For that, it must be durable, it must have some historically intrinsic value, and it must be divisible for convenience and efficiency.\u00a0 Precious metals have best guaranteed that necessary confidence since antiquity.<\/p>\n

America Was Hours Away from Financial Catastrophe on September 14, 2008 <\/strong>
\nDon\u2019t let them claim these inflationary and economic crises can\u2019t happen, because they have happened<\/strong>.<\/p>\n

History is littered with nations and societies destroyed by overprinting paper currency, exactly the situation we face today.\u00a0 Each time, without exception, gold and silver money flourished. The example of silver coins and bushels of apples is straight from The Great Depression of the 1930s.<\/p>\n

More recently, the U.S. suffered bouts of debt-induced inflationary disasters in the 1970s and again in the 1980s.\u00a0 Gold and silver climbed to then-record highs in dollar values, as buyers lined up to trade their paper for precious metals.<\/p>\n

There was another recent disastrous date in American history most cannot identify.\u00a0 It\u2019s not 9-11.<\/p>\n

Just six years ago, on Sunday night, the 14th of September, 2008, the U.S. came within a few hours of complete financial collapse, marked by the bankruptcy of financial giant Lehman Brothers and imminent disaster for its counterparties, and known now as the sub-prime housing mortgage crisis.\"Currency\"<\/p>\n

Years of disgraceful, mounting public and private debt viciously brought down banks like dominoes across the globe.\u00a0 Fortunes and futures were erased, putting tens of millions out of work and into impoverishment.<\/p>\n

The U.S. government and Federal Reserve responded with an $800 billion bailout and by frantically printing trillions of paper dollars (more debt piled onto more debt) to temporarily \u201crescue\u201d what was left of the global banking system, solving none of the problems that same debt created.<\/p>\n

And just as gold and silver held value during the inflation of the 70\u2019s and 80\u2019s, gold has today settled 56% higher and silver 51% higher<\/a> since that Sunday night in 2008 when the world came face to face with economic annihilation.<\/p>\n

The dangers were not corrected, but only disguised with more paper debt.\u00a0 That makes a greater financial catastrophe possible, which could force transportation shutdowns, food shortages, lost jobs and other economic chaos, erasing that most important characteristic of money \u2013 confidence \u2013 in the dollar and other fiat currencies.<\/p>\n

If so, new rules and values, varying from community to community, would emerge while governments scramble to regain or maintain authority.\u00a0 Someone will decide those new rules for their families and communities.\u00a0 Someone will set a new price for apples.<\/p>\n

That someone will be he who has the gold.<\/p>\n

About the Author<\/strong><\/em><\/p>\n

Article by Jerrell Jenkins, moneymetals.com<\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Jerrell Jenkins, moneymetals.com A lot of folks took advantage of recently falling gold and silver prices to beef up their precious metals holdings. Those adding to their portfolios understood the old adage of buying low and selling high.\u00a0 Unfortunately, others wait until dollar values of gold and silver have zoomed before deciding to convert […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-64001","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/64001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=64001"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/64001\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=64001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=64001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=64001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}